Marquese Chriss signs endorsement deal. Question

[Tr1boy]

It seems like these days as long as you are a good looking prospects either Nike or Adidas will sign you.

For someone like Simmons i get it.  This could really help with your companies shoe sales especially if he become really a good player (est)

But Chriss? Dunn? I believe Murray has signed a deal too

How can Nike, Adidas afford to do this?   Also doesnt too many signings "water things" down?   

Thoughts

[manl_lui]

It seems like these days as long as you are a good looking prospects either Nike or Adidas will sign you.

For someone like Simmons i get it.  This could really help with your companies shoe sales especially if he become really a good player (est)

But Chriss? Dunn? I believe Murray has signed a deal too

How can Nike, Adidas afford to do this?   Also doesnt too many signings "water things" down?   

Thoughts

their annual revenue are upward of 25-30 billion a year, offering a kid a million'ish a year or two doesn't hurt them that much, for them it's merely an investment on the player that may blow up the league in the future.

I think UA signed Curry cheap and when he became MVP, UA made a lot of money off of shoe and apparel sales

[86MaxwellSmart]

Tax write off.

[CelticSooner]

Buddy signed with Nike as well. They have plenty of money to burn hoping for the next big thing. Remember Curry was picked at 7.

[hwangjini_1]

It seems like these days as long as you are a good looking prospects either Nike or Adidas will sign you.

For someone like Simmons i get it.  This could really help with your companies shoe sales especially if he become really a good player (est)

But Chriss? Dunn? I believe Murray has signed a deal too

How can Nike, Adidas afford to do this?   Also doesnt too many signings "water things" down?   

Thoughts

last year nike made a gross profit of $14,780,000,000 (is $14+ BILLION)
adidas has a gross profit of $16,920,000,000

yes. yes indeed i think they can afford it.

[hwangjini_1]

Tax write off.

rather, the cost of doing business.

[Fafnir]

Almost every NBA player signs a shoe endorsement deal on some level. The money varies wildly and is incentive laden with options to match future deals. Nike/Adidas are basically making a lot of small bets on a lot of athletes to build relationships for when some of them inevitable do become stars.

This also doesn't mean they get their own shoe necessarily.

[Fafnir]

Tax write off.

Not at all, they are drafting these players for their future potential just like NBA teams are.

Most players already have relationships to shoe companies via camps, coaches, and schools as well. Shoe money drives the travel basketball teams.

[alewilliam789]

Just making an investment like any other company would. It's like putting money into a startup in hopes that you have a share that will make you a lot of money.